Rational thinking: Is behavioural finance worth advisers' attention?

BEHAVIOURAL FINANCE

Laura Miller
clock

Behavioural finance - touchy feely psycho-babble or financial planning essential? Laura Miller looks at the birth and evolution of a phenomenon.

If you asked someone, "do you want to lose money", the answer is undoubtedly going to be "no". So everyone acts in their own best financial interest, right? Not according to the fathers of behavioural finance, Amos Tversky and Daniel Kahneman. Never heard of them? Well you should have. Kahneman was awarded the Nobel Memorial Prize in Economic Sciences in 2002, and in both 2011 and 2012 he made the Bloomberg 50 most influential people in global finance list – despite being a psychologist. Why all the accolades? Well, during their research Tversky and Kahneman hit upon a series of be...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Autumn Budget 2025: IFS urges chancellor to avoid 'limping from one forecast to the next'

Autumn Budget 2025: IFS urges chancellor to avoid 'limping from one forecast to the next'

The updates advisers need in the run up to the Autumn Budget 2025 on 26 November

Professional Adviser
clock 16 October 2025 • 1 min read
The importance of female representation in wealth management

The importance of female representation in wealth management

'Representation at senior levels helps inspire the next generation of female advisers'

Amy Grace
clock 15 October 2025 • 5 min read
From youth mentor to advice: Mark Singh's journey to financial advice and empowerment

From youth mentor to advice: Mark Singh's journey to financial advice and empowerment

A passion for financial education and youth empowerment

Professional Adviser
clock 15 October 2025 • 3 min read